FOG BLOG CANADA LOG: ZELLERS TO MAKE COMEBACK, MAINLY IN BAY STORES BUT EXPANSION AND ONLINE COMING!

Hudson's Bay to resurrect discount retail chain Zellers Chain will debut new e-commerce website, expand brick-and-mortar locations Canadian department store Zellers hopes to make a comeback next year, a decade after the discount chain shuttered most of its locations.

Hudson's Bay Co. says Zellers will debut a new e-commerce website and expand its brick-and-mortar footprint within select Hudson's Bay department stores across the country in early 2023.

The company says the relaunched Zellers will offer "a digital-first shopping journey that taps into the nostalgia of the brand."

In an email to CBC News, a spokesperson for Hudson's Bay did not confirm where the new Zellers stores will be located.

Initial inventory will include housewares, furniture and toys, with apparel to be introduced later in the year. The company also plans to launch a private brand, according to the release. The return of Zellers comes as soaring inflation drives consumers to discount retailers in search of lower prices. It follows Tuesday's announcement from Hudson's Bay that outdoor gear retailer MEC will open shops in three Bay department store locations this fall.

It also comes amid an ongoing lawsuit over a Quebec family's use of the Zellers brand.

• HBC sues Quebec retailing family for using Zellers name

The Moniz family is behind various recent trademark applications and corporate registries, including Zellers Inc., Zellers Convenience Store Inc. and Zellers Restaurant Inc.

In a statement of claim filed last fall, HBC accused the Moniz family of trademark infringement, depreciation of goodwill and so-called passing off — the deceptive marketing or misrepresentation of goods.

Bruce Winder, a Toronto-based retail analyst, said he believes the Zellers revival is partly a reaction to the lawsuit.

"They need to demonstrate that they are still interested in the brand and there's no better way to do that than actually open some stores," Winder said.